Bitcoin News Today: Bitcoin Rises on Weak Jobs Data Fuels Fed Rate Cut Hopes

Bitcoin rebounded from a low near $114,100 and edged closer to reclaiming the $116,000 level following the release of weak U.S. July nonfarm payroll data, which fueled expectations of a Federal Reserve rate cut in September. The jobs report showed only 73,000 new jobs created, far below the 147,000 forecasted, with downward revisions erasing 258,000 jobs from the previous two months. The unemployment rate remained steady at 4.2%, but the overall labor market slowdown intensified speculation about monetary easing. The probability of a 50-basis-point rate cut in September surged to 82.1% on the CME FedWatch tool from just 39.2% the previous day, reflecting growing market sentiment in favor of a Fed pivot [1].

The crypto market responded with a modest rebound, particularly for Bitcoin, which had fallen to as low as $113,800 earlier in the week. However, BTC remained unable to break above $116,000 despite the favorable macroeconomic outlook. The broader crypto market also saw a pullback, with major tokens like Ether, Solana, and Dogecoin all dropping over 6%. This divergence from traditional risk assets, such as equities and gold, which saw significant safe-haven flows, raised concerns about the resilience of the ongoing crypto bull market [2].

While the weak jobs data supported the case for a Fed rate cut, the market reaction was mixed. One faction interpreted the report as a sign that the economy is slowing enough to warrant easing, while another feared it signaled an impending recession, prompting a sell-off across both crypto and equities. The Nasdaq 100 fell 2.5%, and crypto miners like Coinbase and Riot Platforms saw sharp declines. Gold and U.S. Treasury yields also reflected the shift in risk appetite, with gold rising nearly 2% and the 10-year yield falling to 4.22% [3].

Bitcoin’s inability to follow through on the bullish macroeconomic narrative has raised questions about investor sentiment toward high-risk assets. Some analysts suggest that the broader economic uncertainty and concerns over Trump’s tariff policies, which were introduced earlier in the week, are weighing on risk-on sentiment. Order-book data indicated some buyer interest around key support levels, particularly near $114,000, with potential for a short squeeze if the market stabilizes [3].

The coming weeks will be crucial for Bitcoin as it tests the $116,000 level. A sustained breakout could signal a resumption of the bull trend, while a failure to push through could lead to a deeper correction. Analysts are divided on the outlook, with some believing the bull market remains intact but in need of a strong catalyst to reignite momentum [3].

Source:

[1] Bitcoin Rejects at $116K Despite US Jobs Win as Fed Rate ...

https://m.fastbull.com/news-detail/bitcoin-rejects-at-116k-despite-us-jobs-win-4338015_0

[2] Bitcoin Dumps On Weak U.S. Jobs Data, Fed Rate Cut ...

https://bravenewcoin.com/insights/bitcoin-dumps-on-weak-u-s-jobs-data-fed-rate-cut-odds-surge-past-75

[3] Bitcoin price: World's top cryptocurrency tanks and these ...

https://m.economictimes.com/news/international/us/bitcoin-price-worlds-top-cryptocurrency-tanks-and-these-could-be-the-reasons/articleshow/123041828.cms

[4] Gold Rises Nearly 2% As US Payrolls Data Boosts Rate ...

https://m.fastbull.com/news-detail/gold-rises-nearly-2-as-us-payrolls-data-4338018_0